Buy now as a tactical dip-entry: CRDO is extremely oversold (RSI_6 ~8) after an -8% selloff, which often sets up a fast mean-reversion bounce.
Sentiment backdrop is still supportive: options positioning is net-bullish (put/call ratios < 1) and Wall Street targets remain far above spot despite a recent cooling.
Main near-term risk is trend/momentum: MACD is still accelerating lower, so expect volatility; the cleanest upside trigger is a rebound back above the 105 area and then the 122 pivot.
Technical Analysis
Price/Trend: Sharp downside move today (-8.08%) with momentum still bearish.
Momentum: MACD histogram -3.391 (below 0) and negatively expanding => selling pressure not fully exhausted yet.
Oscillators: RSI_6 = 8.099 => extremely oversold, statistically favorable for a short-term rebound.
Moving Averages: Converging MAs => transition zone; current tape favors a snap-back rally if buyers defend support.
Positioning/Sentiment: Put-call ratios below 1 (OI 0.87; volume 0.65) => options market skew is moderately bullish (more calls than puts).
Volatility: IV 30d 116.01 vs HV 103.13; IV percentile 93.2 => options are expensive and pricing large swings.
Activity: Today’s option volume (7,173) is well below 5–10d averages (~12k), suggesting today’s selloff isn’t accompanied by peak options panic/hedging.
Technical Summary
Sell
8
Buy
7
Positive Catalysts
increases odds of a near-term bounce.
Neutral/Negative Catalysts
Downtrend momentum is still building (MACD histogram negative and expanding), so the stock can continue sliding before it rebounds.
Near-term technical damage: price is below S1 (105.346), increasing the chance of a test toward S2 (94.73).
Analyst commentary flags “additional competition is imminent,” which can pressure multiples even with strong revenue growth.
No supportive news flow in the last week to counter today’s selloff (no fresh catalyst to stop momentum).
Financial Performance
Latest reported quarter: 2026/Q2.
Revenue: 268.0M, up +272.08% YoY (very strong top-line acceleration).
Profitability (as provided): Net income 82.6M, down -2055.88% YoY; EPS 0.44, down -1566.67% YoY (headline YoY declines imply major comparability effects, but directionally this is the key near-term concern for sentiment).
Gross margin: 67.55%, up +6.92% YoY (margin strength supports the longer-term bull case).
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: After a wave of big raises/upgrades in early Dec 2025 (multiple Buy/Outperform/Overweight and targets ~220–250), sentiment cooled somewhat with BofA cutting its target to 200 (still Buy) on 2025-12-16, followed by Rosenblatt initiating Neutral with a 170 target on 2026-01-21.
Current Wall Street bull case:
Strong AI connectivity positioning (400G/800G), new customer ramps, and multi-year expansion into new connectivity markets.
Several firms believe earnings power can expand materially over time.
Current Wall Street bear case:
Competitive pressure highlighted as “imminent,” and the stock can be choppy as investors scrutinize AI ROI and hyperscaler spend.
Influential/Political flows: No recent congress trading data available; hedge funds and insiders show Neutral activity (no notable accumulation signal).
Wall Street analysts forecast CRDO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRDO is 219.44 USD with a low forecast of 165 USD and a high forecast of 250 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast CRDO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRDO is 219.44 USD with a low forecast of 165 USD and a high forecast of 250 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 98.060
Low
165
Averages
219.44
High
250
Current: 98.060
Low
165
Averages
219.44
High
250
Rosenblatt
Neutral
initiated
$170
AI Analysis
2026-01-21
Reason
Rosenblatt
Price Target
$170
AI Analysis
2026-01-21
initiated
Neutral
Reason
Rosenblatt initiated coverage of Credo Technology with a Neutral rating and $170 price target. The firm sees the company's revenue nearly tripling and earnings to more than quadrupling in fiscal 2026. The near-term strength is driven by Credo's technology stack, first-mover advantage in 400G and 800G, and success in the up to 7-meter AI data center scale-out and scale-up connectivity markets, the analyst tells investors in a research note. However, Rosenblatt says "additional competition is imminent."
BofA
Vivek Arya
Buy
downgrade
$240 -> $200
2025-12-16
Reason
BofA
Vivek Arya
Price Target
$240 -> $200
2025-12-16
downgrade
Buy
Reason
BofA analyst Vivek Arya lowered the firm's price target on Credo Technology to $200 from $240 and keeps a Buy rating on the shares. The firm is updating its price targets for U.S. Semiconductor stocks under its coverage, the analyst tells investors. BofA views 2026 as a midpoint for an 8 to 10 year journey upgrading traditional IT infrastructure for faster, AI workloads. While stocks may remain choppy amid greater scrutiny of AI returns and hyperscaler cash flows, this should be offset by faster large language model builders and AI factories, the firm adds.
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